QUESTION
Am I legally obligated to repay my employer if they overpaid me?
Asked on Sep 21st, 2014 on Labor and Employment - Georgia
More details to this question:
I was asked to resign in May 2014, and I was given a 3 months severance. The severance was based on a verbal agreement. No documents were signed by me. The only thing I gave was a resignation, but I only said "I agree to terms discussed." I didn't add any detail to document. Now, my employer is continuing to pay me (without tax deductions) post severance term via auto-draft into my bank account. Am I legally obligated to pay this back if they ask for it? Can I not claim it as part of my severance if nothing was ever signed? They have not noticed the error at this point.
1 ANSWER
Labor and Employment Attorney serving Atlanta, GA
2 Awards
Let me see if I understand you: When you were asked to resign, they offered you three months severance. They had never promosed to pay you more than three months severance. There was no company policy or contract that assured you that you would receive more than three months severance You accepted three months severance at the time of your termination. You never made an agreement after this point that you would receive more than three months severance. You have done nothing to earn the payment of more than three months severance.
So you think you should be allowed to keep the extra severance payments that they have made ti you erroneously ? Am I interpreting the facts correctly?
Even if they could not legally force you to repay the overpayment, however, do YOU think it is honest to accept the money that you did not earn and that they did not promise to pay you, by taking advantage of their mistake?I think they may be able to force you to pay back the extra severance in this situation. I know if I were their attorney, I certainly would try.
Michael A. Caldwell
Answered on Sep 22nd, 2014 at 12:54 PM